Tags: Entegra | Power | Group | Bankruptcy

Entegra Power Group Files for Bankruptcy

Tuesday, 05 Aug 2014 07:16 PM

Entegra Power Group LLC, a U.S. pipeline and power plant operator, filed for bankruptcy after reaching a deal with creditors to swap more than $1 billion of debt for equity, the company said in court filings.

Under the proposed reorganization plan filed Monday in U.S. Bankruptcy Court in Wilmington, Delaware, along with the bankruptcy petition, the lower-ranking creditors who are owed $1.31 billion would take over the Tampa, Florida-based company. The creditors’ debt is held through Wells Fargo & Co.

The proposal requires approval of a bankruptcy judge. Entegra has asked for a hearing to approve the plan on Sept. 18.

In contemplating reorganization, the company “attempted to obtain new senior secured financing from outside lenders but determined that such financing could not be obtained on commercially reasonable terms” prior to a bankruptcy, Chief Executive Officer Michael Schuyler said in a filing.

The third-lien creditors would get back about 64.6 percent of what they’re owed under the proposed reorganization plan. If the plan is approved by a bankruptcy judge, the third-lien creditors would get 100 percent of what the company calls Series A Equity.

Current equity holders would get so-called Series B Equity under the plan. Second-lien and general unsecured creditors would either receive new debt, cash or have their original debt reinstated. Both groups would recover 100 percent of what they’re owed, according to a disclosure statement filed in court. All of the second-lien debt holders favor the plan, according to the filing.

Entegra, owner of the biggest power plant in Arkansas, listed assets of more than $500 million in the Chapter 11 papers.

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Entegra Power Group LLC, a U.S. pipeline and power plant operator, filed for bankruptcy after reaching a deal with creditors to swap more than $1 billion of debt for equity, the company said in court filings.
Entegra, Power, Group, Bankruptcy
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2014-16-05
Tuesday, 05 Aug 2014 07:16 PM
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